Strawberry Fields Reit, Inc. · AMEX:STRW
Strawberry Fields Reit — Q4 2024 Earnings Presentation
31 slides from Strawberry Fields Reit's earnings presentation, Mar 3, 2025
Slide 1: Strawberry Fields REIT
Strawberry Fields REIT NYSE American: “STRW” March 3, 2025
Slide 2: Legal Disclaimer
Disclaimer The information contained in this presentation does not purport to be all-inclusive and neither the Company nor any of its subsidiaries or their respective stockholders, affiliates, representatives, control persons, partners, members, managers, directors, officers, employees, advisers or
Slide 3: Use of Projections and Non-GAAP Disclaimer
Use of Projections This presentation contains projected financial information with respect to the Company. Such projected financial information constitutes forward-looking information and is for illustrative purposes only. The assumptions and estimates underlying such financial forecast information
Slide 4: Legal Disclaimer: Non-GAAP Definitions
EBITDARM is a non-GAAP measure that for any period of determination, the aggregate net operating income of Tenant for such period to the extent derived from the operation of the Premises as reflected in their financials, adjusted to add thereto, to the extent allocable to the Premises for the applic
Slide 5: Strawberry Fields REIT Company Highlights
Strawberry Fields REIT Company Highlights • The history of our Company began 21+ years ago when our CEO & Chairman Moishe Gubin & one of our Directors Michael Blisko began acquiring skilled nursing facilities in Indiana. • In 2015 Strawberry Fields REIT (the “Company”) was spun out as a Propco with
Slide 6: About Strawberry Fields REIT Inc. (the Company)
About Strawberry Fields REIT Inc. (the “Company”) The Company is an income Our business is financed through a producing real estate investment 51.5% of our facilities are leased to related parties, combination of bond debt, HUD company that owns 119 properties including 67 facilities leased to affil
Slide 7: Portfolio Summary as of December 31, 2024
Portfolio Summary as of December 31, 2024* Demonstrated Operating Results and Financial Strength 118** $350M+ 51.9%*** Owned assets, plus one asset under a long-term lease Acquisition Pipeline Net Debt Leverage Ratio 14,540** $55.8M 1.75x**** 2024 Total number of beds TTM EBITDARM Rent Adjusted FFO
Slide 8: Proven Acquisition Strategy Driving Significant Growth in the Portfolio
Proven Acquisition Strategy Driving Significant Growth in the Portfolio 2005 – 2014: Jun 2024: We 2015: Our predecessor, 2015: We issued $68.3 2018: We issued $67.1 2021: We created an 2022: We Feb Moishe Gubin, our Aug & Sep 2024: Strawberry Fields REIT, million of Series A bonds million of Series
Slide 9: Portfolio Composition
Diversified Base of Consultants to Portfolio Composition Operators 130 Facilities 14,540 total beds across 11 states (Illinois, Indiana, Arkansas, Tennessee, Kansas, Kentucky, Michigan, Missouri, Ohio, Oklahoma, and Texas) 12 buildings include two types of licensed facilities In order to leverage sc
Slide 10: Experienced Management
Moishe Gubin, our Chairman and founder, has served as the Chief Executive Officer since inception of the Company. From 2004 to 2014, Mr. Gubin was the Chief Financial Officer and Manager of Infinity Healthcare Management, LLC, a company engaged in managing skilled nursing facilities and other health
Slide 11: Board
Moishe Gubin, Chairman, who also serves as our Chief Executive Officer. Essel Bailey, Director, has spent the last 50 years engaged in the public and private healthcare capital markets, first as a lawyer specializing in corporate and real estate finance and then as an executive of several healthcare
Slide 12: Disciplined Underwriting and Acquisition Strategy
Disciplined Underwriting and Acquisition Strategy Investment Criteria Due Diligence Asset Management Recent Acquisitions 10% projected ROI Diligence includes review of operator-level Analysis of tenant-furnished operator-level • Acquisition of 2 SNF’s in Texas near San financials (3+ years) an
Slide 13: Strong Relationships with Experienced Consulting Groups & Operators
Strong Relationships with Experienced Consulting Groups & Operators 13 Provides consulting services to 81 operators with 9,600+ * beds (including 68 Strawberry facilities with 7,645 Our 119 properties are leased to 130 operators that receive licensed beds) Founded in 2008 by Michael Blisko and
Slide 14: Skilled Nursing Industry in the U.S
Skilled Nursing Industry in the U.S
Slide 15: Nursing Home Industry in the U.S - Summary
Nursing Home Industry in the U.S - Summary High barriers to entry: Federal and state-level -Significant set-up costs subsidies through -Regulatory restrictions Medicaid & Medicare -Specialized knowledge The Company specializes in a growing market that’s historically proven to be recession proof. Cas
Slide 16: Trends in population
% of Total Population Trends in 25.0% 20.2% population 19.3% 20.0% 20.0% 16.1% age 15.0% 13.0% 65+ As a result of an increase 10.0% 2.3% 3.5% 4.3% in life expectancy in the United States, by 2030 5.0% 1.9% 1.9% age 0.0% 85+ 2010 2020 2030 2040 2050 the population of individuals aged 65 and Total Pop
Slide 17: Age Demographic of the Average SNF Resident
Age Demographic of the Average SNF Resident* 83.5% 45.0% 40.0% 35.0% The services that a long- term resident receives at 30.0% a SNF is geared towards those who need constant 25.0% care or cannot take care 20.0% of themselves anymore. The percentage of 15.0% residents that are in SNF’s aged 65+ is 1
Slide 18: Projected Medicare $'s to be Spent on the Aging Population in SNF's
Increased Spend on 300 Aging Population Projected Medicare $’s to be Spent on the Aging Population in SNF’s $273.0 $262.1 250 4.63% $250.3 $238.6 CAGR $227.9 $207.9 $217.9 Due to the increase in life 200 $188.1 $197.6 expectancy in the United States, which will result $181.6 in a greater amount of t
Slide 19: Financial Highlights
a . ee a ; WBERRY Me FIELDS Financial Highlights
Slide 20: Adjusted FFO and Adjusted EBITDA Growth 2019-2024
Adjusted FFO and Adjusted EBITDA Growth 2019 –2024 Adjusted FFO Growth ($/thousands) Adjusted EBITDA Growth ($/thousands) 60,000 90,632 55,825 90,000 52,668 12.6% 51,076 80,000 8.2% 79,342 50,000 CAGR 43,935 CAGR 67,344 73,790 70,000 66,607 40,000 38,844 61,045 60,000 AEBITDA 30,916 50,000 AFFO 30,0
Slide 21: Assets Growth and Base Rent Growth 2019-2024
Assets Growth and Base Rent Growth 2019 –2024 Total Assets Growth (GAAP) CAGR ($/thousands) Average Base Rent CAGR ($/thousands)* 1,000,000 110,000 942,654 104,386 900,000 8.6% 100,000 7.5% CAGR 798,338 CAGR 86,839 800,000 90,000 82,158 686,168 686,168 77,738 75,323 REAL ESTATE INVESTMENT 700,000 80
Slide 22: Growth In AFFO
Growth In AFFO Significant AFFO Growth driven Accretive reinvestment of cash flow, scaling operations and utilizing HUD debt Illustrative Reinvestment of Cash Flow AFFO/Share Growth1 2024 Estimated AFFO $56,825,000 Payout Ratio 49.5% $1.11 $1.02 $0.96 Retained Cash Flow $27,635,000 $0.82 $0.75 $0.61
Slide 23: Debt Structure as of December 31, 2024
Debt Structure as of December 31, 2024 Debt Maturity HUD Guaranteed Debt Years 29.4% $262.1MM 1-5 Weighted average cost: 3.91% Banks Secured Bank Debt $198.4MM Years 31.7% Interest rate: SOFR+3.5% 1-5 Bonds SF REIT LTD* Secured Bond Series C $73.3MM Years Interest rate: 5.70% 12.0% 11-20 SF REIT LTD
Slide 24: Strawberry Fields REIT Facility Statistics
SNF Facility Occupancy of 68.7%* SNF Average Facility Size of 106 Beds SNF PPD Average of 73 Residents** Strawberry Operators Payor Mix Fields REIT Private 8% Medicare 5% Other 11% Facility Statistics as of November 2024 Medicaid 76% *Based on 12,083 operating SNF beds. **PPD (“Per Patient Day”) is
Slide 25: Facility Operator & State Diversification
Facility Operator & State Diversification* Base Rent by Related Consultant Base Rent by State Texas 4% Landmark Other Other 5% 4% 10% Infinity of Illinois Reliant Care Management 12% Illinois 7% Missouri 17% 7% Kentucky Siena Healthcare Infinity of Indiana 19% 8% 27% Indiana 28% Hill Valley HC Tenne
Slide 26: Market Outperformance and Value Opportunity
Market Outperformance and Value Opportunity Standout Returns for STRW in the Last Year 1-Year Total Return vs. Peers (1) AFFO Trading Multiple(2) 16.2x 15.3x 52% 12.4x 12.5x 11.0x 10.2x 36% 24% 23% 15% 13% Aug… Sep… Jun-… Dec… Mar… Ma… Apr-… Oct… Jan… Feb… Feb… Nov… Jul-24 STRW SBRA OHI LTC NHI CTRE
Slide 27: Low Payout Ratio with Solid Dividend Yield
Low Payout Ratio with Solid Dividend Yield STRW Boasts Lowest Payout Ratio Among Peers AFFO Payout Ratio(1) Dividend Yield(2) 93.4% 7.5% 7.6% 82.9% 83.3% 6.6% 80.1% 75.3% 5.2% 4.9% 4.7% 50.0% STRW CTRE NHI LTC SBRA OHI CTRE STRW NHI LTC OHI SBRA Note: Please refer to the final page of this presentat
Slide 28: Skilled Nursing Focus Magnified
Skilled Nursing Focus Magnified STRW is the Closest Pure-Play SNF Real Estate Investor in the Market SNF Properties as a % of Portfolio(1) 90.8% 76.5% 75.9% 65.2% 37.8% 34.4% STRW CTRE SBRA OHI NHI LTC 28 1) Represents owned portfolios as of Q4 2024.
Slide 29: Portfolio Strength Paired with Accretion
Portfolio Strength Paired with Accretion Strong SNF Performance with Higher AFFO/Share Growth than Peers SNF TTM EBITDARM Coverage(1) 2019-2024 AFFO/Share CAGR(2) 2.82x 12.9% 2.72x 1.95x 1.87x 1.75x 1.78x 4.1% -1.4% -1.3% -2.5% -7.1% SBRA NHI LTC OHI CTRE STRW STRW SBRA OHI LTC NHI CTRE 29 Note: EBI
Slide 30: Moishe Gubin, Jeff Bajtner contact details
Moishe Gubin Jeff Bajtner Chairman & CEO Chief Investment Officer Mgubin@sfreit.com Jbajtner@sfreit.com 6101 Nimtz Parkway South Bend, IN 46628 574.807.0800
Slide 31: Non-GAAP Measure Reconciliation
Non-GAAP Measure Reconciliation Adjustments to FFO ("AFFO"): Adjustments to EBITDA ("AEBITDA"): (dollars in $1,000s) 2024 2023 (dollars in $1,000s) 2024 2023 Net income $ 26,505 $ 20,244 Net income (loss) $ 26,505 $ 20,244 Depreciation and amortization 33,688 29,235 Depreciation and amortization 33,
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